The Supreme Court has handed ex-Cabinet secretary Raphael Tuju a major reprieve after suspending the auction of his Karen properties over a debt of Sh2.2 billion owed to a regional bank.
A bench of five judges of the apex court suspended the seizure of the assets by the East African Development Bank (EADB) pending the hearing of the suit.
The Supreme Court agreed to hear Tuju’s petition because the Court of Appeal judgment elevated the Foreign Judgments (Reciprocal Enforcement) Act, which allows the recognition of verdicts reached abroad, above Kenyan laws and the Constitution.
Read: Raphael Tuju set for auction after losing Sh2bn UK loan suit
Mr Tuju also claimed he was not given a hearing before the UK courts as required by the law, arguing the Court of Appeal ignored the defence.
The move comes days after the Court of Appeal dismissed Mr Tuju’s petition against enforcement of a UK judgment for the debt, setting the stage for the auction of the properties.
Last week, EADB appointed consultancy PricewaterhouseCoopers (PwC) as receiver managers for the 20-acre property and the high-end Dari hotel, which Tuju estimated to be worth Sh3.5 billion.
The Supreme Court hears disputes relating to the presidential elections as well as reviews decisions of the Court of Appeal touching on public interest and the interpretation of the Constitution.
“That this honourable court issues conservatory orders staying the execution of the following proceedings…enforcement of the notice of appointment of receivers and manager, appointing George Weru and Muniu Thoithi as receiver managers,” said the judges led by Deputy Chief Justice Philomena Mwilu.
“Any enforcement proceedings emanating from the facility agreement of 10th April 2015.”
Mr Tuju unsuccessfully fought the enforcement UK judgment up to the Court of Appeal, arguing that EADB was frustrating efforts to have other lenders, including KCB Group and equity investors, make the property profitable.
